Kotak Special Situations Fund (KSSF) is extending a ₹1,000- crore support to TVS Supply Chain Solutions Ltd (TVS SCS) and promoters of the TVS Family.
Under the transaction, KSSF, managed by Kotak Investment Advisors Ltd (KIAL), has financed TS Rajam Rubbers Private Ltd with ₹800 crore by subscribing to non-convertible debentures (NCDs) to help the promoter, R Dinesh, acquire CDPQ’s stake in TVS SCS. The investment will help the TVS Family consolidate its holdings in TVS SCS, according to a statement.
A couple of weeks ago, TVS SCS indicated that the stake held by Caisse de dépôt et placement du Québec (CDPQ), one of North America’s largest pension fund managers, will be acquired by R Dinesh and Rajam family members along with their associates post receiving the regulatory approvals.
CDPQ had picked a minority stake in 2016 after buying most of the joint stake held then by Goldman Sachs and KKR in TVS Logistics Services Ltd (now TVS SCS) in a transaction valued at about $155 million.
“We are delighted to support the TVS group and R Dinesh in consolidating their ownership in a valuable and high-growth technology-led business,” said Srini Sriniwasan, Managing Director, Kotak Investment Advisors Ltd. Additionally, KSSF has invested ₹200 crore in the form of equity in TVS SCS.
Welcoming Kotak’s funding support, R Dinesh, Managing Director, TVS SCS, said that the company was well positioned to grow in India and globally through its unique tech-enabled solutions.
“This investment is in line with our objective of participating in growth-oriented businesses and partnering with industry leaders by offering customised solutions to fit the needs of each business and is a win-win for all,” said Eshwar Karra, CEO, Kotak Special Situations Fund at KIAL.
TVS SCS is a leading third-party logistics (3PL) services provider with global operations. The company has developed strong capabilities in providing supply chain solutions, freight forwarding, and last-mile logistics with long-standing relationships with marquee clients.